m i c r o e n e r g y i n t e r n a t i o n a l microenergy international inaise conference 2012 1st...

M i c r o E n e r g yI n t e r n a t I o n a l

MicroEnergy International

INAISE Conference 2012

1st June 2012

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Agenda

3. Financing renewable energy solutions

Practices and MEI approach

2. Linking Microfinance and Clean Energy Supply

Challenges and opportunities

1. MicroEnergy International Our Vision and Role

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MicroEnergy International

Vision and Role

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Background

approx. 200-250 Energy Service

Companies

300 – 400 MFIs experiencing energy loans

10.000 MFIs serving more than 155 mio.

clients

1.4 billion people without

access to electricity2.7 billion

people dependent on

biomassUS$ 433 billion

energy purchasing

power of the BoP

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MEI Company

Private consulting company specialized in the field of microfinance and energy. Founded in 2001 in BerlinTeam consisting of:• 12 Consultants &

Assistants• 15 Associate Experts• 7 Associated scientific

institutes

MicroEnergy International

We design, develop and implement strategies to facilitate access to clean and affordable energy to low-income people at the BoP.

We support financial institutions to develop programs in the energy sector.

VISION

MISSION

Synergizing Microfinance and Clean Energy Supply

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Science

Microenergy

Research Alliance

Academ

y

Trainings, qualificati

on industrial

& scientific programs

Quality GroupQuality

Mgmt for Energy

Companies &

Product Certificati

on

Finance &

Investment

Financial Instruments for

the Microenergy Sector

Engineering

Energy Product

Design & Optimizatio

n

Consulting

Policy & Business Consultin

g

Our Role

Microenergy Sector

MicroEnergy International

Society

Public Relations

& Promotio

n of Microenergy Topics

Making energy work for people living in poverty: How clean energy supply can be enabled through

microfinance

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Our Vision

“Support microfinance institutions in developing energy specific programs in order to expand access to energy services for low-income segments at the BoP”

Support local and global policy makers in developing a favorable framework for linking energy & microfinance

Support manufacturers and energy companies in adapting their products to the quality requirements of MFIs

Support investors to link social and ecological investments

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Linking Microfinance & Clean Energy Supply

Challenges and Opportunities

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Necessity of microfinance

Microfinance

Change requires new microenergy systems

Small to medium sized investment necessary

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MEI experience

…technological knowledge…experience with energy needs of their clients…awareness of additional requirements of energy loans…experience with servicing/maintenance…experience with quality issues

…experience with low-income clients…network of clients and partners…knowledge on income and repayment habits/possibilities…financial expertise…service expertise…infrastructure to offer financial services

have

Microfinance Institutions…

lack

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Challenges – Suppliers vs. MFIs

Knowledge gap between Product Suppliers & MFIs Product Suppliers   MFIs

End Userknowledge

Living conditions  

End-users needs  

Technology Know-How

Technology quality  

Technological needs of end users

Marketing &Distribution Know-How

Energy products  

Savings + Credit products

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Opportunities for Productive Uses of Energy solutions through MFIs

Also:• Cooking energy for

restaurants• Energy in food

processing• Energy for artisans• Energy in commerce• ...

Cooling energy Cooking energy for restaurantsSolar driers for coffee producers

Energy for mobile charging Energy for lighting

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Financing Renewable Energy Solutions

through MFIs

Practices: Why and How?

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Every MFI has its own strategy, diverse products

& adapted business models

Energy Lending

Increasing income – Supporting existing businesses with better solutions

Financing the substitution process with energy efficient solutions

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One hand model

MFI ENERGY PRODUCT SUPPLIER

Microenergy Provider

Microfinance

Sustainable option  of funding

Installation

Microenergysystems

Maintenance

Customer Service (warranty, spares)

Join-Venture

End-user Consumers and Microentrepreneurs

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Grameen Shakti Bangladesh

Example

Financing the substitution process with energy efficient solutions

Subsidiary of Grameen Bank

0

7000

14000

21000

28000

35000

42000S

old

SH

S

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Two hand model

MFI ENERGY PRODUCT SUPPLIER

Microfinance

Sustainable option  of funding

Installation

microenergy systems

Maintenance

Customer Service (warranty, spares)

End-user Consumers and Microentrepreneurs

Contract

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Example: Microenergy projects in Peruvian MFIs

MFIs: Caja Huancayo, Fondesurco

Technical Assistance: MEI

Income generation – Support existing businesses with better solutions

The Energy Inclusion Initiative

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Sm

all

Sca

leC

om

merc

ializ

ati

on

6

Larg

e

Sca

leC

om

merc

ializ

ati

on

7

Preparation Identification Planning

Pilot Execution Pilot Evaluation

Impact Assessment

Up-scaling

Monitoring

Desk-study and

research

Identification of

products

Search of Suppliers

and Design of

Supply Chain

Monitoring of Products and Suppliers

Evaluation of MFIs

Business Plan Draft, Pilot

Planning

Evaluation of Pilot and

Adjustments of Business

Plan

Execution of Pilot

withMFIs 5

3

4

2 3

4

1

1

ME Methodological Approach

Mic

roenerg

yM

icro

financ

e

Renegotiation with suppliers

Identification of

Energy needs2

5Mic

roenerg

yM

icro

financ

e

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Thank you for your attention!

MicroEnergy International GbR Postdamerstr. 143 D, 10783 Berlin · GermanyPartner: Noara Kebir, Daniel Philipp

Contact Person: sarah.roopinia@microenergy-international.com

Visit us at:www.microenergy-international.com

Contact